Category: F&I

Categories
EFG Companies F&I

Gap Insurance Coverage, Other Added Services Impact Dealership’s Profitability

What are you offering?

A study by Finaccord, a financial market research group, concludes that during times when car sales flatten out, additional goods and services can determine the profitability of a dealership. Some of these additional goods and services include:

  • Extended warranties
  • Automobile Service Contracts
  • Gap Insurance Coverage
  • Creditor Insurance
  • Roadside Assistance

The study concludes that warranties, insurance and service contracts are particularly valuable because these renewable multiyear policies bring profits into the current year with no sales efforts on the part of the dealership. Added value is the key to quality customer retention programs.

EFG Companies has 34 years of experience in understanding and predicting consumer behavior. Calling upon its full portfolio of additional products and services, they will help you create a winning situation for your automotive customer retention programs.

Categories
Dealership Training EFG Companies F&I The Transcend Group

Sales Philosophies – Value

Understanding value – Often when one hears the word “value” they instantly want to attach a price.  Supposedly, creating value enables you to command a higher price, but the truth is value really has nothing to do with price.  The creation of value is not about increasing your company’s bottom line; it means creating value for your customer. While some products are just so good that their value is apparent to the customers, other products have to strive to create a unique individuality that will allow their value to stand out to the customer.  They may create value with service delivery, better business interactions, better terms and conditions or outstanding customer service.

This is the case in automobile marketing.  While some customers are so brand loyal that your product has instant value, others are looking to see what you have to offer in addition to the vehicle or other products that you are marketing.  If the customer understands and appreciates the value you create, then you can demand a higher price for your products that translates into obtaining value in terms of sales for your company. EFG Companies can help you understand how your personal business philosophy has a direct impact on the creation of your products value.

Are you a serious closer or are you a “of service” closer?

Signs of a serious closer

•    Only thing that matters is how many deals you close and how big your paycheck is at the end of the pay period.

•    Deadline and sales quota driven

•    Constantly moving on to the next customer

Signs of a “of service” closer

•    More concerned with providing customer service than the close

•    Takes time to listen and understand the customer’s needs

•    Remains positive and creates product value for customers

•    Willing to allow the close to walk away if it is not in the customer’s best interest

EFG Companies, with their added products and services, can help you to further understand and assess what type of closer you are, as well as understand how your personal business philosophy translates into marketing a business philosophy. That philosophy adds value, which will make your automobile marketing a success.

 

Categories
EFG Companies F&I

Encourage the ‘Hand-Me-Down Culture’ with Proper Services

Statistics show that, on average, consumers are keeping their vehicles longer. This may be attributed to several things:

  • Quality vehicles are being made to last longer than their predecessors.
  • The tight economy and weak job market has people more skeptical about taking on debt.
  • More dealers are offering automobile service contracts that are extending the life of vehicles.

EFG Companies has a full range of added products and services that can help you and your dealership create customer retention programs designed to educate your customers regarding the importance of automobile service contracts.  The contracts sell themselves when the customers understand the following.

  • Their investment is protected – For most consumers their vehicle is the most important asset they own.  It meets all of the transportation needs of the family, and the last thing they need is a large, unexpected repair bill.  A service contract alleviates this worry.
  • Repairs to fit into their tight budgets – By having a service contract that helps with major repairs, they are able to make payments over time versus the typical one-time large payment due when the repair is completed.
  • Vehicle value increases – A vehicle that has been serviced on a regularly scheduled basis usually has a higher resell value than one that has not.  The automobile service contract encourages consumers to regularly schedule service appointments, which, in turn, will not only increase the value of the vehicle but also increase the dealership’s bottom line
  • Vehicles last longer – The average automobile service contract covers many different parts of a vehicle and often goes beyond the manufacturer’s warranty. Continued coverage on vital components means that they are serviced as needed, which will increase the lifespan of the vehicle and lead to a more reliable performance. This enables consumers to keep their vehicles longer and pass them on to the next generation, which will increase brand loyalty in your dealership.

EFG Companies helps create lifetime customers.  We can assess your current customer retention programs and assist you in creating a winning situation that will have your customers returning for generations to come.